.png)
.png)
Goodbye, ELS
The electronic lodgement service will no longer be supported by HMRC after 1 March 2006. From 1 April 2006, agents will no longer be able to submit any returns using the electronic lodgement service or receive self assessment statements through the service. It will be possible to submit 2004-05 tax return and previous years, i.e. from 1999-2000, until 31 March 2006. See this week's Comment for more information on this development.
www.hmrc.gov.uk
PAYE payments
Despite the wonders of technology, most electronic payment methods still take at least three bank working days to reach the payee's account. HMRC has reminded employers that PAYE payments need to be with HMRC by the 22nd of each month and they must have cleared funds no later than that day.
Where the 22nd falls on a weekend or is a bank holiday, cleared funds need to be with them by the previous bank working day. HMRC say that they 'cannot stress enough that it is your responsibility to make sure your payments reach us on time'.
For the rest of 2005-06 the 22nd is a non-bank working day on the following dates:
- Month 6 - October
- Month 9 - January 2006
- Month 12 - April 2006
Employers might want to contact their bank to find out when they need to make payment and also whether there is a daily cut off time for those arrangements.
Employers Bulletin 21, October 2005
New CIS
Contractors and employers in the construction industry should have now received an invitation from HMRC to a presentation explaining the new construction industry scheme, which is being introduced from April 2006.
The main changes under the new scheme include the following:
- there will no longer be any need for CIS cards, certificates or vouchers;
- contractors must check or verify new subcontractors with HMRC;
- subcontractors will still be paid either net or gross, depending on their own circumstances, however, it will be HMRC that tells the contractor which treatment to use during verification;
- a higher rate tax deduction, if a subcontractor cannot be matched on the HMRC system, will apply until the subcontractor contacts HMRC and registers or sorts the problem;
- contractors must make a return every month to HMRC detailing payments made to all subcontractors;
- contractors must declare on their return that none of the workers listed are employees, called a status declaration;
- nil returns must be made when there are no payments in any month; returns can be made over the telephone, the Internet or on paper. There will be financial penalties for failure to submit a return.
Employers Bulletin 21, October 2005
Free admission
HMRC has published new guidance on the legislation relating to the application of gift aid to donations that are made in place of an admission fee, paid to charities that open to the public for the viewing of property. Charities that open to the public free of charge but seek voluntary donations from visitors are not subject to this legislation.
The new rules, which take effect from 6 April 2006, will apply where the following conditions are met:
- the visitor makes a donation that is at least 10% more than the admission charge for the equivalent right of admission; or
- the donation secures admission to the property for a 12-month period, for example through a season ticket or a membership scheme.
The legislation replaces an exemption that applied only to heritage and wildlife charities. Those charities can make use of the new provisions so long as donations meet the criteria detailed in this guidance.
www.hmrc.gov.uk
Quoted eurobonds
Securities that are officially listed on the new Professional Securities Market in London and the new Euro MTF in Luxembourg will be regarded as listed on a recognised stock exchange. In order to qualify as quoted eurobonds, and therefore enabling interest to be paid gross without deduction of income tax, securities have to meet the conditions set out in TA 1988, s 349(4).
The London Stock Exchange launched the new Professional Securities Market on 1 July 2005. Eurobond securities that are admitted to trading on the Professional Securities Market will be admitted to trading on a recognised stock exchange, as it is part of the London Stock Exchange.
This will apply to new issues on the Professional Securities Market, and also to existing eurobond securities that are transferred to the Professional Securities Market from an existing London Stock Exchange market.
Until 15 July 2005 the Luxembourg Stock Exchange operated only one market, the Bourse de Luxembourg. On 18 July 2005, the Luxembourg Stock Exchange started to operate another market called the Euro MTF. Some commentators have referred to this new market as 'Luxalter'.
Eurobond securities that have been admitted to the Official List by the Société de la Bourse de Luxembourg, and are admitted to trading on Euro MTF, will meet the requirement to be listed on a recognised stock exchange. This will apply to new issues, and also to existing eurobond securities that transfer from the main market.
www.hmrc.gov.uk
